Recently,IT Interactive Agency placed won a bid to develop a social mediawebsite. The company has 25 permanent employees, and it specialisesin developing websites. However, the management of the companydecided to hire extra staff after winning the social media siteproject. The human resource development hired forty-five extracontract web developers to improve the community function. Thepurpose of the community function is allowing people can search,rate, and comment on restaurants and shops. If the customer likes thepage, he or she can also forward the email forward the listed emailto his/her friends. The main source of income for the website hasbeen selling advertising space. The IT interactive agency is astartup company that intends to raise capital for developing awebsite through requesting potential customers to contribute money inadvance, and then they are part of the shareholders. The developerswere using a new programming language, which they had recentlyinvented. The programming language was alleged to be compatible withmost of the existing computer platforms. However, management iscurrently experiencing serious financial strains because it spent theentire initial investment, and the accounts department claims that ithas run out of cash. The investors’ representative wants to findout the reason the company has no money, and how the developers usedthe initial capital, they contributed. Since the business is afiasco, the following is a list of questions the investors’ councilhas prepared to determine the reason the business has failed.

1.Whatare the main strengths of IT Interactive Agency business strategy?(Module 6)

Theaim of this question is evaluating whether the web developmentcompany had integrated special technology that could have improvedthe performance of the company. Besides, it will assist indetermining whether the innovation integrated was successful or itfailed.

2.Didyou have any reversal of strategic change? (module 2)

Theaim of this question is determining whether the developers interferedwith the originally proposed plan thereby, leading to the failedfunctioning plan. The investors agreed to contribute capital inadvance because the basic plan was very convincing. However, theimplemented plan was not productive.

3.Doesthe company have an alternative plan it can use to reverse thefailures preventing the company from efficient performance? (module2)

Theaim of this question is evaluating whether the agency management hasan alternative plan it for turning around the success of the websiteor the investors have lost their capital. The chief operating officerwill answer the question.

4.Whatare you planning to do with the present employees that have failed todeliver the expected results? (module 2)

Thisquestion aims at evaluating how the human resource manager reacted tothe staff after they failed to surpass the company goals. Besides,the HRM proposal will assist the investors to have a clue about thequalifications of the new staff.

5.Whatare the main qualifications the CEO used in choosing the managersresponsible for the website development? (module 2)

Theobjective of this query is helping the investors analyse the mainqualities the CEO considers when assigning the tasks. The formulaused can help in determining the potential for success in the future.

6.As the employees and expected developers of the website, are you surethat you have what it takes to improve the initial website youcreated? (module 2)

Thisquestion will assist to understand the attitude of the employees. Theinvestors will require to be guaranteed that the employees aremotivated, and optimistic, and ambitious to complete the project theystarted.

7.Asthe main developers, have you identified the reason the website hasnot been attracting many customers? (Module 3)

Thepurpose of this question is investigating whether the developers doesknow the weaknesses of the website. In addition, the question isvaluable in evaluating the weaknesses that are obstructing thewebsite from achieving the original results.

8.Howis the IT Interactive Agency HRM preparing the staff to receive theanticipated changes restructuring the operation plan? (Module 3)

Thequestion will be directed to the HRM. It will help in determiningwhether the employees have acquired special training, mindpreparation, and effective communication regarding the managementchanges expected under the new management.

9.Howwill the HRM motivate the staff to provide quality work? (Module 3)

Theaim of the question is establishing whether the agency offers theemployees incentives to encourage them to deliver higher qualitywork.

10.Isthere a surprise competitive edge the company is anticipating to usein reversing the first failure? (Module 3)

Thisquestion intends to find out whether the agency has strategised amethod that can guarantee to attract customers to advertise with thesocial media. The answer can assist in visualising the company fromboth the perspective of the developers and customers.


Question1 was intended for the operations manager of IT Interactive Agency.He claimed that the idea was feasible because the company hadinnovative technology that other social media websites do not use.They designed website using a new programming language, which healleged to be compatible with several computer platforms (Birkinshawet al. 2008, p. 826). For example, it can be viewed in MAC, Windows,Android and even open source operation systems such as the Ubuntu.The purpose of using the language was furthering the goals of thecompany of offering a platform that customers can access using anydevice with internet irrespective of the platform it has. Inaddition, the operations manager also asserted that the company hadexperienced developers that had supervised successful social websitesdevelopment in the past (Birkinshaw et al. 2008, p. 828).

Theoperations manager agreed that the website failure was partiallycaused by poor management of reversal of strategic change. The planfor creating a website was invented by a group of very skilled webdevelopers. However, the management failed to agree on thecompensation, ownership, and profit sharing of the complete site(Mantere et al. 2012, p. 172). The developers also demandedunreasonably high allowances during the development period. However,the management refused to give in to their demands. As a result, 60 %of the original developers quit their positions (Mantere et al. 2012,p. 175). The management was forced to poach affordable web developersfrom other companies. Unfortunately, some of the recruitedprofessionals could not create a quality platform that caneffectively compete with other social sites that are already in themarket. For example, some functions in the community, such as sharingand database search, are not working as the initial plan had outlined(Mantere et al. 2012, p. 184).

TheIT Interactive Agency had anticipated that working with a lessinexperienced team could turn disastrous as it did. This made thecompany insure the investor’s capital. The manager claimed that theinsurance had confirmed that it would refund 75 % of the capitalthe original capital the company had invested. The organisation willthen use the compensation money to hire the original developers asconsultants. Their objective would be to direct their replacements onthe original idea. Mantere et al. (2012, p. 175), argue thatstrategic change management is valuable when deviation from theoriginal plan fails to deliver the anticipated changes. The authorsoffer detailed procedure that managers should follow when it becomesnecessary to reverse an executed change.

Thehuman resource manager informed the investors that the company isplanning to put them in a one-month intensive training programme thatwill be supervised by the initial inventors of the plan. Theconsultants will also analyse the mistakes closely that thedevelopers did when designing the websites. She also stated that theconsultants would be available to assist the designers every timethey are stuck in the process of development. In Time for an Upgrade,Smart (2009, p. 48), contends that employees require upgrading theirskills constantly in order to remain competent and successful intheir profession. Similarly, the present staff can also attain superbperformance if the original inventors can participate in trainingthem.

TheCEO asserted that the main qualification they require in a customeris a person who understands the return on investment (ROI) and howthe project would suit the clients. He described potential managersas visionary persons that can analyse the market, and design a sitethat suits the customers’ needs (Smart 2009, p. 49). The managersshould also be flexible should be capable of modifying theirmanagement approach if the employee composition is changed.Similarly, they should have efficient financial management skillssuch that they would manage to complete the work within the originalbudget (Smart 2009, p. 50).

Thestaff proposed that the organisation required modifying the regularchange management approach to include improvement of the structure,strategies, and skills training. For instance, they proposedimprovement of communication structure between the staff and thesenior management. On the other hand, skills training should beallocated to experienced managers that are willing to listen tosuggestions from the employees (Carter 2008, p. 22).

Theemployees noted that some functions of the websites are not workingas the initial site developers had intended. The first step would beimproving the programming of the features that are not workingefficiently. On the other hand, the staff promised to conduct duediligence to understand the main improvements the clients require inthe website (Carter 2008, p. 21).

Themanagement was also planning to use case studies and narratives tofamiliarise with the expected changes. The case studies offer a clearway to understand concepts from a practical perspective. In fact, themanagement was using stories and narratives to minimise the fear ofthe unknown of the stakeholders involved in the acquisition process,as well as the company’s staff. The success stories can help increating a road map for the expected business strategy, as well asdevelop a mutual team vision. The mistakes that other mergingcompanies had made could assist Microsoft-Yahoo merger stakeholdersavoid similar blunders (Mckinnon 2008, P. 19).

Manyemployees and managers working on the project are contract employees.Their objective is completing the development work within a shortperiod so that they can look for other contracts. Others are workingon two projects concurrently. The HRM claimed that it would reviewthe remuneration of the employees prior to reassigning them the task.In addition, the competent staff will be given permanent jobs in thecompany (Mckinnon 2008, p. 19).

TheCEO claimed that he had hired a competent marketing team and a logothat would assist in promoting the social media brand. He alsoclaimed that the redesigned website would also be accessible eventhrough smartphones in order to improve its accessibility. The pageswould be loading faster while the information will be visible even insmall phone screens. Dulye (2008, P. 34), argues that communicationis an effective tool for acquiring customer trust. Similarly, The CEOexpects to gain loyalty of the customers through a strategicpromotion campaign.


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Mantere,S., Schildt H. A., and Sillince, J.A., 2012. Reversal of StrategicChange. Academyof Management Journal.55 (1) 172–196.

Smart,M.P., 2009. Time for an upgrade. ContinuingProfessional Education Product of the Year.

Birkinshaw,J., Hamel, G., Mol, M.J., 2008. Management Innovation. Academyof Management Review,33(4), 825–845.

Mckinnon,N., 2008. We’ve never done it this way before: promptingorganizational change through stories. WileyInterScience,[Online] Available at: &lt &gt [Accessed10 September 2014].

Dulye,L., 2008. Using communication to drive change at Rolls-Royce. MelcrumPublishing,13(1), 32-37.